China Gengsheng Minerals, Inc., a materials technology company based in China and conducting its business through the BVI-domiciled subsidiary Gengsheng International Corporation, announced the establishment of US$1.19 mln credit line with Gongyi Chengzhong Agriculture Credit Cooperative in Henan province of China.
The new credit line is available through August 14, 2009, and secured by certain assets of Henan Gengsheng Refractories Co., Ltd., which is the wholly-owned subsidiary of the BVI-registered Gengsheng International Corporation. The proceeds from the new credit line are expected to expand the facilities of China Gengsheng Minerals, and for other working capital needs.
In the first half of 2008, China Gengsheng Minerals generated a positive net operating cash flow of $4.3 mln., capital expenditures in the first six months of 2008 made $2.5 mln. The secured short-term bank loans of the company were US$5.1 mln as of June 30.